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PRINCIPLES OF PRINCIPLES OF MARKETINGMARKETING
University of Management and Technology1901 N. Fort Myer Drive
Arlington, VA 22209 USAPhone: (703) 516-0035
Fax: (703) 516-0985Website: www.umtweb.edu
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CHAPTER 16:CHAPTER 16:Marketing and Society: Marketing and Society: Social Responsibility and Social Responsibility and Marketing EthicsMarketing Ethics
Armstrong, G. & Kotler, P. Marketing: An Armstrong, G. & Kotler, P. Marketing: An IntroductionIntroduction
(6th ed.) Prentice Hall © 2003.(6th ed.) Prentice Hall © 2003.
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Road Map: Previewing the ConceptsRoad Map: Previewing the Concepts
Identify the major social criticisms of marketing.
Define consumerism and environmentalism and explain how they affect marketing strategies.
Describe the principles of socially responsible marketing.
Explain the role of ethics in marketing.
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Deceptive PracticesDeceptive Practices
High-Pressure SellingHigh-Pressure Selling
Shoddy, Unsafe ProductsShoddy, Unsafe Products
Planned ObsolescencePlanned Obsolescence
Poor Service to SomePoor Service to Some
Marketing’s Impact on Individual Marketing’s Impact on Individual ConsumersConsumers
Criticisms Leveled at the
Marketing Function by
Consumers, and Others
High PricesHigh Prices
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High Costs of
Distribution
High Costs of
Distribution
High Advertising
and Promotion
Costs
High Advertising
and Promotion
Costs
High Prices Caused by the Following FactorsHigh Prices Caused by the Following Factors
ExcessiveMarkups
ExcessiveMarkups
Marketing’s Impact on Individual Marketing’s Impact on Individual Consumers: High PricesConsumers: High Prices
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DeceptivePricing
DeceptivePricing
Falsely Advertising “Factory” or “Wholesale” Prices, Large
ReductionFrom Phony High List Price
Falsely Advertising “Factory” or “Wholesale” Prices, Large
ReductionFrom Phony High List Price
DeceptivePackagingDeceptivePackaging
Exaggerating Package Contents, Not Filling Package to the Top,
Using Misleading Labeling
Exaggerating Package Contents, Not Filling Package to the Top,
Using Misleading Labeling
Deceptive PromotionDeceptive Promotion
Overstating the Product’s Features, Luring Customers to
the Store for Out-of-Stock Bargains, etc.
Overstating the Product’s Features, Luring Customers to
the Store for Out-of-Stock Bargains, etc.
Marketing’s Impact on Individual Marketing’s Impact on Individual Consumers: Deceptive PracticesConsumers: Deceptive Practices
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Marketing’s Impact on Individual Marketing’s Impact on Individual ConsumersConsumers
High-Pressure SellingSome products – such as cars and jewelry – are said to be sold, not bought.
Such tactics damage marketer’s long-run relationship with customers.
Shoddy or Unsafe ProductsComplaint that many products are not made well.
Second, many products deliver little benefit.
Third, concerns product safety.
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American Association of Advertising American Association of Advertising AgenciesAgencies
This ad demonstrates that advertising can’t make consumers buy things that they don’t need despite high-pressure selling.
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Marketing’s Impact on Individual Marketing’s Impact on Individual ConsumersConsumers
Planned ObsolescenceChange consumer concepts of acceptable styles.
Hold back attractive functional features.
May break, wear, rust, or rot sooner than should.
Poor Service to Disadvantaged Consumers
May pay more for inferior goods.
“Redlining” may occur where major chain retailers avoid placing stores in disadvantaged neighborhoods.
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False Wants & Too Much Materialism
Too Much Political Power
Producing Too FewSocial Goods
Cultural Pollution
Marketing’s PerceivedNegative Impact on
Society as aWhole
Marketing’s Impact on Society as a Marketing’s Impact on Society as a WholeWhole
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Unfair Competiti
ve Marketing Practices
Marketing’s Impact on Other Marketing’s Impact on Other Businesses Businesses
Marketing Practices Create
Barriers to Entry
Acquisitions of
Competitors
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Buyers’
Rights
Sellers’
Rights
Consumerism is an Organized Movement of Citizens and Government Agencies to Improve the Rights and
Power of Buyers in Relation to Sellers.
ConsumerismConsumerism
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The Right Not to Buy a Product Offered for SaleThe Right Not to Buy a Product Offered for Sale
The Right to Expect the Product to be SafeThe Right to Expect the Product to be Safe
The Right to Expect the Product to Perform as ClaimedThe Right to Expect the Product to Perform as Claimed
The Right to Be Protected Against Questionable ProductsThe Right to Be Protected Against Questionable Products
The Right to Be Heard About “Quality of Life” IssuesThe Right to Be Heard About “Quality of Life” Issues
The Right to Be Well Informed About the ProductThe Right to Be Well Informed About the Product
Consumerism – Buyers’ RightsConsumerism – Buyers’ Rights
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Plan for New EnvironmentalTechnologies
Adopt Designfor the
Environment Practices
Have a Sustainability
Vision
PracticeProduct
Stewardship
PracticePollution
Prevention
EnvironmentalismEnvironmentalism
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Major Legal Issues Facing Marketing Major Legal Issues Facing Marketing Management (Fig. 16-2)Management (Fig. 16-2)
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Consumer-Oriented MarketingConsumer-Oriented Marketing
Innovative MarketingInnovative Marketing
Value MarketingValue Marketing
Sense-of-Mission MarketingSense-of-Mission Marketing
Societal MarketingSocietal Marketing
Holds That a Company’s Marketing Should Support the Best Long-Run Performance of the Marketing System.
Enlightened MarketingEnlightened Marketing
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Societal Classification of Products (Fig. Societal Classification of Products (Fig. 16-3)16-3)
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Marketing EthicsMarketing Ethics
Distributor Relations Advertising Standards Customer Service
Pricing Product Development General Ethical Standards
Companies Need to Develop Corporate Marketing Ethics Policies – Broad Guidelines That Everyone in the
Organization Must Follow and Should Address:
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Decided by the Free Market and
Legal System
Decided by the Free Market and
Legal System
Responsibility of Individual Companies
And Managers
Responsibility of Individual Companies
And Managers
Marketing EthicsMarketing Ethics
Principles That Should Guide Companies and Marketing Managers On Issues of Ethics and Social
Responsibility:
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Rest Stop: Reviewing the ConceptsRest Stop: Reviewing the Concepts
Identify the major social criticisms of marketing.
Define consumerism and environmentalism and explain how they affect marketing strategies.
Describe the principles of socially responsible marketing.
Explain the role of ethics in marketing.
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